Celebrating Seniors: How Annuities Can Strengthen Your Retirement Strategy
August 14, 2025
August 21 is National Senior Citizens Day — a day to appreciate and honor the important contributions of older adults in the community. Established in 1988 by President Ronald Reagan, this day is also the perfect opportunity to consider the valuable role annuities can play in retirement planning.
How do annuities fit into a retirement plan? Social Security, 401(k)s, and pensions aren’t always enough to bring peace of mind. Adding annuities to the mix can establish the financial stability you crave — alongside a predictable and steady income stream for life.
Why Retirement Income Planning Matters More Than Ever
According to the Social Security Administration, as of June 2025, about 87% of U.S. adults age 65 and older were estimated to be receiving Social Security benefits. That number jumped to 92% for those 75 and above.
Many of those seniors rely heavily on Social Security. A recent report from the Pew Research Center found that for 63% of adult recipients, Social Security accounted for about half of their entire income.
It's not surprising, then, that so many seniors worry about outliving their savings and running out of money, especially as life expectancy increases. Social Security and savings alone are often not enough to live on. By complementing your portfolio with additional income sources such as annuities, you create an additional income stream of predictable payouts — for life.
What Do Annuities Offer Seniors in Retirement?
No wonder so many people turn to annuities to strengthen their retirement savings. The advantages are clear: guaranteed lifetime income, protection from market volatility, and customizable payout options.
With a fixed deferred annuity, your money grows modestly with a locked-in rate. You can establish it with a single lump sum or make periodic payments. Once annuitized in a few years or decades, you’ll begin to receive payments for life, no matter how long you live. Taxes are deferred until payments are disbursed.
The main difference with a fixed annuity is that your money isn’t deferred — you can begin to receive payouts almost immediately.
If you want the potential to grow your money even more, a Fixed Indexed Annuity may be the right fit. It offers similar benefits, including a guaranteed interest rate, plus the option to earn even more by linking it to the market.
Is an Annuity Right for Your Retirement Goals?
When deciding whether an annuity makes sense for your financial future, assess the following:
- Do you want predictable income?
- Are you worried about outliving your savings?
- Do you want to protect your family from financial uncertainty?
If you’re ready to weigh your options and build a tailored plan, reach out to a trusted 1891 representative today.
FAQ About Annuities
Will I lose access to my money?
Not necessarily. During the accumulation phase, small amounts can usually be withdrawn, although larger withdrawals will likely trigger penalties.
Can I leave anything to my family?
Yes. Most contracts let you add a special rider so you can pass unused funds to beneficiaries.
Are annuities safe?
Generally speaking, yes. But like any financial vehicle, only sign a contract with a financial institution you trust.
What about inflation?
If you’re worried about cost-of-living increases, most plans let you purchase additional riders to help with inflation.
What if I outlive my money?
You can set up your annuity so that even if you live past 100 and exhaust your entire initial investment, you’ll continue to receive your expected monthly payments.
Secure Your Future — and Celebrate It
This National Senior Citizens Day, do something different: Don’t just recognize the accomplishments of those around you. Celebrate the future you also hope to realize by thinking about how you can best preserve your financial independence.
Being proactive and having these conversations now can pay off greatly when retirement arrives. Establishing strong financial foundations ahead of time will make navigating the coming years that much easier.
At 1891 Financial Life, we specialize in providing tailored insurance solutions that cater to diverse needs. Our team is equipped to help you navigate these challenges with expertise and compassion. Contact your 1891 Financial Life representative today.
About 1891 Financial Life
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of “The World’s Best Life Insurance Companies.”
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.